Tag Archives: Money and Politics

Photo: Jon Dziadyk spent $9,950.00 on his campaign and unseated a two-term city councillor who spent $119,937.69.

Released this week, the financial disclosures from Edmonton’s municipal elections detail how much each mayoral and councillor candidate raised and expensed during the October 2017 campaign.

The most notable race in terms of money spent was north Edmonton’s Ward 3, where a campaign budget of $119,937.69 could not save two-term councillor Dave Loken from defeat. Loken placed second to Jon Dziadyk, whose campaign only expensed $9,950.00, and he finished narrowly ahead of third place candidate Karen Principe, whose campaign expensed $4,941.54.

Aside from Dziadyk, only two other winning candidates did not to spend the most money in their races. In Ward 6, councillor Scott McKeen’s expenses of $68,833.84 were overshadowed by the $85,469.35 expensed by second place challenger Bill Knight. And in Ward 4, Aaron Paquette’s $58,018.93 campaign was narrowly outspent by second place finisher Rocco Caterina, whose campaign expensed $59,998.97.

While money is still necessary to run a political campaign, as the race in Ward 3 demonstrated, it is sometimes not a factor in determining how voters will act when they reach their voting station.

Below is the breakdown of the revenue and expenses of the for the top three mayoral candidates by votes.

Edmonton Mayoral Election 2013, Financial Disclosure

Candidate

Total Revenue

Total Expenses

Surplus/(Deficit)

Don Iveson

$369,775.67

$366.477.52

$30,298.15

Don Koziak

$2,500.00

$2,500.00

$0

Steven Shewchuk

$2,734.58

$2,734.58

$0

Fourth place mayoral candidate Fahad Mughal claimed revenue and expenses of $22,793.00, and a number of other mayor candidates self-financed their campaigns. None came close to raising or spending the amount that Iveson’s campaign did.

Here are the financial breakdowns submitted from elected city council candidates competing in Edmonton’s 12 wards.

Edmonton City Council Election 2013, Financial Disclosure

Candidate

Total Revenue

Total Expenses

Surplus/(Deficit)

Andrew Knack

$17,772.95

$17.772.95

$0

Bev Esslinger

$63,141.40

$53,807.19

$9,334.21

Jon Dziadyk

$17,040.00

$9,950.00

$7,120.00

Aaron Paquette

$58,018.93

$56,521.04

$1,497.89

Sarah Hamilton

$95,592.00

$84,409.21

$11,182.79

Scott McKeen

$77,401.63

$68,833.84

$8,657.79

Tony Caterina

$67,873.00

$67,173.30

$698.70

Ben Henderson

$61,789.83

$39,930.58

$21,859.25

Tim Cartmell

$95,177.54

$94,276.44

$857.50

Michael Walters

$96,119.06

$96,018.68

$100.38

Mike Nickel

$110,086.17

$108,891.15

$1,195.02

Moe Banga

$89,241.00

$85,672.12

$3,568.88

According to the Local Authorities Elections Act, donations to municipal election candidates are limited to a maximum of $5,000 for individuals, corporations and trade unions during an election year.

The NDP continue to demonstrate an impressive ability to raise money in Alberta. The NDP has raised the most of any party in the first three quarters of 2017.

This is the United Conservative Party’s first-ever quarter of fundraising, and I expect the party will raise significantly larger amounts in the next quarter when it has a permanent leader and when annual contribution limits reset before the first quarter of 2018.

This was likely the final quarter that the Progressive Conservative and Wildrose parties will report any significant fundraising amounts. Both parties are now controlled by the board of directors of the UCP. Funds donated to the two parties in the third quarter cannot be transferred to the UCP or any other party.

The Alberta Party is attempting to position itself as a centrist alternative to the NDP and UCP, but it will not be much of a political force going into the 2019 election if it party cannot start raising significantly more funds than it has in the first three quarters of 2017. I would not be surprised if these embarrassingly low fundraising returns raise questions inside the party about the future of Greg Clark‘s leadership. I expect the influence of the Alberta Together group and the influx of former PC Party officials into the Alberta Party will force the issue at the party’s annual general meeting on November 18, 2017.

A number of third-party advertisers (frequently referred to by the media as Political Action Committees) raised significant amounts of funds in the third quarter. I hope to delve a little deeper in this issue in a future post.

Combined party and constituency fundraising results show the governing New Democratic Party in the lead in for the second consecutive quarter of 2017, having fundraised $553,733 between April 1, 2017 and June 30, 2017, a jump from $373,060 raised by the NDP in the first quarter of 2017.

The NDP have raised a combined total of $926,793 in the first two quarter of 2017, while the Wildrose raised $852,689 and the PCs raised $313,791.

This is the second fundraising quarter to fall under new political finance laws introduced by Democratic Renewal Minister Christina Gray in 2016, which lowered the maximum annual donation limits from $15,000 to $4,000. This followed reforms introduced by the NDP in 2015 that banned corporate and union donations to political parties and candidates.

Here is a quick look at the top donors for each of the five main political parties in Alberta in the second quarter of 2017:

These totals are considerably less than what was raised by the governing and official opposition parties in the fourth quarter of 2016, when the NDP raised $1,985,272.00 and the Wildrose raised $2,063,737.63. Similar to previous years, political fundraising in the first quarter of the year is typically lower than the previous year’s final quarter.

Both the NDP and Wildrose Party fundraised less in this quarter than in the first quarter of 2016, when the NDP raised $398,843.71 and Wildrose raised $448,912.71. The PCs raised more than twice in this quarter than the $105,436.47 the party raised in the first quarter of 2016.

This is the first fundraising quarter to fall under new political finance laws introduced by Democratic Renewal Minister Christina Gray in 2016, which lowered the maximum annual donation limits from $15,000 to $4,000. This followed reforms introduced by the NDP in 2015 that banned corporate and union donations to political parties and candidates.

Here is a quick look at the top donors for each of the five main political parties in Alberta in the first quarter of 2017:

The NDP finished their fourth quarter fundraising drive with $798,165, compared to $511,667 for the Wildrose Party, $218,792 for the PCs, $85,930 for the Liberals and $32,612 for the Alberta Party.

This was the second consecutive quarter where the NDP raised more than the opposition Wildrose. Over the course of 2016, the NDP raised $1,985,271 in donations from individual Albertans, more than then $1,758,377 raised by the Wildrose Party.

THE INCREDIBLE IMPLODING TORIES

Alan Hallman

Despite lawsuits, fines, complaints by former MLAs, and having a campaign strategist kicked out of the party, Jason Kenney’s single-focused campaign to dissolve the PC Party and merge it with the Wildrose Party appears to be on track to win a landslide at the party’s delegate convention on March 18.

And despite claims that the party remains viable, and that its constituency associations hold more than $1.7 million in the bank, none of the three candidates claiming to support the “renewal” of the current party appear to be contenders.

In a bombshell rebuke to the party’s elected executive, interim party leader Ric McIver publicly defended Hallman and some members of the party’s youth wing publicly appointed him as their honorary chairman the day after he was suspended. At least three members of the youth wing executive – Sierra Garner, Kyle Hoyda and Natalie Warren – tweeted they were not informed of the decision to give Hallman the honorary chairmanship before it was announced (I am told this is also a violation of the PC Party’s rules, as Hallman is no longer a party member).

It is unclear whether the blowback from McIver and Kenney’s supporters in the youth wing will convince the party executive to rescind the suspension order.

Ric McIver

Less than two years after being reduced to third place in the last provincial election, the party that led Alberta for almost forty-four uninterrupted years feels like a shell of its once mighty self. Once Kenney wins the leadership, there might not be anything left to merge with the Wildrose Party. Maybe that was the plan?

As AlbertaPolitics.ca blogger David Climenhaga notes, potential candidates to replace interim leader David Swann include include outgoing St. Albert Mayor Nolan Crouse, former Calgary broadcaster Nirmala Naidoo, and Calgary lawyer David Khan.

“There’s an opportunity right now in the middle of that political spectrum for a kind of common sense, pragmatic solution to some of the challenges we’re facing right now,” party President Karen Sevcik told CBC Edmonton. “We think there’s some room, there’s opportunity, there’s change, and when there’s change, there’s opportunity.”

Elections Alberta has released the results of political party fundraising from the third quarter of 2016 and it shows that the Alberta NDP raised more money than the Wildrose Party for the first time since the second quarter of 2015. This marks the second best fundraising quarter for Rachel Notley‘s NDP since the party was elected to government in May 2015.

The results for the Wildrose Party represent a significant drop in fundraising for the official opposition party. This is the first time since the third quarter of 2015 that the Wildrose Party has raised less than $400,000 in a quarter.

With Wildrose supporter Jason Kenney a contender for the Progressive Conservative Party leadership, it will be interesting to see whether traditional Wildrose donors have decided to shift their financial support.

And in the midst of a leadership race, the PC Party increased their fundraising income to $48,209.16, up from $27,376 in the second quarter of 2016. The PCs have struggled to raise funds since the NDP banned corporate donations to political parties in 2015.

Here is a breakdown of political party fundraising in Alberta in the first three quarters of 2016:

At a recent meeting of the Special Select Ethics and Accountability Committee, Mr. Sucha proposed local candidate campaign spending be limited to $40,000 for most constituencies and $50,000 for larger northern constituencies and provincial campaigns limited to $1.6 million per party. There are currently no spending limits in Alberta and our province is currently the only province in Canada without spending limits.

Alberta voters swept out cash-flush Progressive Conservative candidates in favour of the cash-strapped New Democrats in 2015, but it has generally been the case in Alberta elections that the richest campaigns win on election day. The absence of spending limits has allowed PC candidates to wildly outspend their opposition during that party’s 44 years as government from 1971 to 2015.

In the 2015 election, a handful of PC candidates spent incredibly large sums of money on local campaigns – Edmonton-Whitemud candidate Stephen Mandel‘s campaign spent $132,991 and ended the campaign with a $135,974 surplus. Lowering the spending limits would prevent parties from using these large funds held in trust following the last election in that constituency in the next election (I would expect they would be transferred to other targeted constituencies).

Federal candidates in Alberta are limited to spending between $200,000 and $270,000 depending on the riding they are running for election in. As provincial constituencies in Alberta are considerably smaller than federal ridings, it is expected that any limits would be lower.

Back in February I proposed ten ways that the election process in Alberta could be improved, and spending limits was my third recommendation. While I do believe the spending limits Mr. Sucha has proposed may be too low, especially for the provincial parties, I do believe he is on the right track. There should be spending limits in Alberta elections.

The committee also debated a motion introduced by Edmonton-Decore NDP MLA Chris Nielsen and amended by Bonnyville-Cold Lake Wildrose MLA Scott Cyr that would lower financial contribution limits to $4,000 during election periods and $2,300 outside election periods. Albertans can currently donate $30,000 to political parties during election and by-election periods and $15,000 outside election and by-election periods.

Elections Alberta released the results of this year’s second quarter of fundraising for provincial political parties this week. Following the release of the disclosures I took a closer look at last quarter’s results and what they could mean for the parties.

Alberta Political Party fundraising in 2015 and the first two quarters of 2016. (Click for a larger image)

New Democratic Party

The Alberta NDP raised ten percent less than they did in the first quarter of 2016, which marks the third best full quarter fundraising results since the party formed government in May 2015. The NDP have never led party fundraising but they appear to have developed a healthy and significant base of individual donors. Note: The NDP do not register donations to individual constituency associations, so all funds raised are disclosed through the central party.

Wildrose Party

The Wildrose Party maintained its fundraising lead over the NDP by raising the most funds of any party the second quarter. This is a good sign for leader Brian Jean, who’s position as leader of Alberta’s conservatives is being challenged by federal Conservative Member of Parliament Jason Kenneythrough a hostile take-over bid of the PC Party. Not counted in the chart above is the funds raised by constituency associations in the second quarter, including Highwood which raised $17,545, Strathmore-Brooks which raised $8,350 and Calgary-Foothills which raised $8,100.

Of note:

Drumheller-Stettler Wildrose MLA Rick Strankman and his wife Diane Strankman donated $1,500 to the Vermilion-Lloydminster Wildrose Association, that constituency association’s largest donors in the second quarter. The constituency is represented in the Legislative Assembly by PC MLA Richard Starke.

Gary Bikman, an MLA who crossed the floor from the Wildrose to the PCs in December 2014, donated $500 to the Wildrose association in Cardston-Taber-Warner. He represented the constituency from 2012 to 2015 and was defeated in his bid to become the PC candidate in 2015.

Progressive Conservative Party

Long gone are the days of secret trust funds and overflowing campaign war-chests. This was a dismal second quarter for the former governing Progressive Conservative Party, which raised only $27,376. This was the party’s second worst quarterly fundraising result in recent memory, which is not a good sign as the PCs are set to begin a leadership race on October 1, 2016. But the poor showing by the central party is somewhat deceiving as some local PC constituency associations raised a significant amount of funds in the second quarter: $11,090 in Calgary-Hays, $10,166 in Vermilion-Lloydminster, $10,100 in Calgary-West, $9,386 in Calgary-Northern Hills and $8,277 in Grande Prairie-Wapiti.

Liberal Party

For the Alberta Liberals, the good news is they increased the quarterly fundraising by 97 percent, the bad news is that they only raised $57,561.04, which is less than their highest quarter last year (they raised more than $110,000 in the first quarter of 2015). Worth noting is a fundraising reception the Liberals are holding on July 21 at the Mayfair Golf Club that will be hosted by Marc de La Bruyere, chairperson of MacLab Enterprises and a well-connected businessman (he also donated $5,000 to the PC Party during the 2015 election).

Alberta Party

After the election of their first elected MLA in 2015, the Alberta Party appears to still be struggling to develop a sustainable base of donors. Unlike the other parties, the newish party is without an already established fundraising network, which takes significant time and resources to develop.

Here is a list of the top donors for each of the five parties, including donations to constituency associations, in the first two quarters of 2016:

On the final night of second quarter fundraising period for Alberta’s political parties, I thought it would be useful to take a look back at the past year in political party fundraising. There has been a seismic shift in our politics in this province since last year when the Progressive Conservatives were defeated in the general election and Albertans elected their first new government in 44 years.

Immediately after their election, the New Democratic Party government implemented one of their key election promises to ban corporations and unions from donating money to political parties. This change had a significant immediate impact on the PC Party, which had relied heavily on large donations from corporations to sustain its operations and fill its large campaign war-chest. The shock of the election loss and severing of its access to corporate donors led the PC Party to raise only $15,575.50 in the third quarter of 2015, it’s lowest fundraising period in decades.

The PC Party appeared to have somewhat recovered by the fourth quarter of 2015, when it raised $221,959.50.

Alberta Political Party fundraising total in 2015 and 2016. These numbers only include funds raised by political parties, not candidates or constituency associations. (Click the image to enlarge)

The NDP and Wildrose Party faired better and adapted much quicker to the changes due to their already substantial base of individual donors. Both parties rely heavily on individual donors contributing amounts under the $250 reporting threshold.

All the major political parties have been soliciting donations in advance of tonight’s deadline. The NDP and Wildrose Party in particular have been flooding their supporters and past donors inboxes with email appeals for donations over the past week.

Here is a sample of what has hit my inbox over the past few weeks:

“Help us defeat the NDP in Q2!” was the subject line of one email from Wildrose executive director Jeremy Nixon on June 24, 2016.

“We’re publicly measured against our opponents, and we’ve got just five days to match the Wildrose dollar for dollar.” was the lede of one email from NDP Provincial Secretary Roari Richardson on June 25, 2016.

“The NDP are now charging you $5.1 million to advertise their carbon tax plan that is putting 15,000 jobs at risk and taking $1,000 a year out of the typical Alberta household.” was the start of one appeal from Wildrose environment critic Todd Loewen on June 21, 2016. (The Wildrose Party paid Ezra Levant‘s Rebel Media to send this letter to its list of supporters).

“It’s 2016 – yet the opposition seems to be stuck in the stone age. Countries around the world are working to address climate change. Yet Wildrose leaders continue to deny basic science.” was the lede of an email from NDP Deputy Premier Sarah Hoffman on June 28, 2016.

“We need to send a strong message to the NDP, and to all Albertans, that Wildrose is the only party ready to govern in 2019.” wrote Wildrose House Leader Nathan Cooper on June 30, 2016.

“We ended 44 years of Conservative rule, reversed devastating cuts to education. We’re leading Alberta’s future with our forward-thinking Climate Leadership Plan. We can’t go back to the days of tax giveaways for the wealthiest and less support for hard working families.” was the end of an email appeal from Premier Rachel Notley on June 30, 2016.

The results of the second quarter fundraising will be released in July 2016.

Last year marked many firsts in Alberta politics, but in relation to fundraising it was the first year that political parties were banned from accepting donations from corporations and unions. This change was the made in the first law passed by the the New Democratic Party government.

Not surprisingly, the NDP had its most successful fundraising year in 2015, raising nearly $3 million over the course of the entire year. Despite the floor crossings that crippled the party in late 2014, the Wildrose Party bounced back with healthy fundraising for 2015.

The Progressive Conservatives, Alberta’s natural governing party from 1971 to 2015, broke records in fundraising and at the polls last year (in very different ways).

After reportedly nearly missing the deadline to submit its financial disclosures from the recent provincial election, the PCs posted the disclosure on its own website, which provides some detail into the overwhelming wealth of the former governing party during its failed attempt at re-election in May 2015. (The full report is now posted on the Elections Alberta website).

The disclosure report provides information about a $2,000,000 loan secured by the PC Party from the Canadian Western Bank with an outstanding balance of $1,544,866 as of July 5, 2015. Security on the loan includes a personal guarantee of $1,455,000 from a former director, who is unnamed in the document.

The report shows the PCs raised $2,802,500 in donations greater than $250 and $90,625 lower than $250 during the April 7 to July 15, 2015 campaign period. The PCs spent $4,303,969 and ran a deficit of $930,236 during the election campaign.

In response to its financial troubles, the party received significant financial transfers from some of its wealthier constituency associations, including $30,000 from Edmonton-Whitemud, $25,000 from Calgary-Elbow, $20,000 from each Calgary-Varsity and St. Albert, and $15,000 from Whitecourt-Ste. Anne.

During its 44 years in government the PCs were able to depend on large corporate donors to help pay off campaign bills and debts, but the party has struggled after corporate donations to political parties were banned by the first law passed by the Alberta NDP Government in June 2015. Interim leader Ric McIver initially denounced the ban, but later stood with the entire nine member PC caucus in voting in favour of the bill.

The PCs will hold their annual general meeting in spring 2016 and have launched a 500-Day Plan to prepare the party for the 2019 provincial election. The PCs are expected to choose a permanent leader in early 2016.

New Unite the Right By Moving Further to the Right Group

According to a report from the Calgary Herald, a new group calling themselves “ The Alberta Prosperity Fund” has launched the latest bid to unite the two main conservative parties in Alberta. The private group is reported to have looked far to the political right for inspiration by inviting American anti-tax crusader Grover Norquist as guest speaker to a closed-door session in Calgary this week. Mr. Norquist is known for his role in pushing the Republican Party further to the political right, contributing to the deep political division in America.

Responding to the group’s formation, Wildrose Party leader Brian Jean told the Herald that “[w]e have had our lawyer send them a letter requesting that they stop telling people they have our endorsement or support.“

Following last week’s release of Alberta’s political party financial disclosure reports for 2014, I thought it would be interesting to look at the history of political donations in our province over the past ten years. Annual and quarterly financial disclosure reports are available for public consumption in difficult to search pdf files on the Elections Alberta website.

[See the charts below for the ten year fundraising trend for Alberta’s four main political parties]

Alberta’s two main conservative parties – the Progressive Conservatives and Wildrose Party – remained the dominant forces in political fundraising in 2014. The PC Party’s impressive $3.2 million sets a record for the party, while the Wildrose Party’s $2.1 million is only slightly less than the party fundraised in the year before the 2012 election.

The New Democrats collected an impressive $776,674 in donations in 2014, a record high for that party. The Liberals raised $361,112, slightly less than their 2013 fundraising totals, and the Alberta Party raised $108,837 in donations, a record for that party.

The PC Party continued to rely heavily traditional corporate donors and individual donations in amounts larger than $250, while the Wildrose Party and NDP continued to collect significant amounts of funds in amounts smaller than $250 (nearly half of the Wildrose donations were in amounts smaller than $250).

Here is a look at the ten year fundraising trend for Alberta’s four main political parties:

(Note: These charts take into account fundraising by the central parties, not constituency associations. Information about constituency association financial returns is available separately in individual pdf documents on the Elections Alberta website).

Wildrose Party raised $1,572,159.26 in the first two quarters of 2014, slightly down from their $1,625,290.94 raised during the same period in 2013. The PCs, despite their recent internal turmoil, are claiming $1,406,924.81 raised by the party in the first half of 2014, up from the $1,237,607.50 raised in the same period in 2013.

As the Edmonton Journal’s Graham Thomson wrote in his column yesterday, “[t]he issue here is not that the PCs are bad at raising money, it’s that the Wildrose party is proving particularly good at raising money.”

Not included in these numbers are funds raised at the constituency level, where the Tories raised more than the Wildrose. This should not be a surprise, as the PC Party has 59 MLAs who form the government. That the Wildrose Party has only 17 MLAs and has continues to be successful at party level fundraising remains troubling for the long-governing PCs.

While the Tories continue to show heavy reliance on large corporate donations to fill their coffers, a significant percentage of Wildrose funds come from individual donations in amounts less than $250.00.

The Tories continue to show signs of weakness in constituencies represented by Wildrose MLAs. The Medicine Hat PC Association has not raised any funds since 2012 and the Innisfail-Sylvan Lake Tories claimed $300.00 in the second quarter of 2014, its first revenue since 2012.

Meanwhile, the Wildrose Party appears to be dormant in two important northern constituencies – Fort McMurray-Conklin and Fort McMurray-Wood Buffalo. According to financial disclosures, the two Wildrose constituency associations have not raised any funds since 2012, when PC-turned-Wildrose MLA Guy Boutilier was unseated by Tory Mike Allenin Fort McMurray-Wood Buffalo.

Looking at the other parties, the NDP showed positive growth as their fundraising numbers increased by more than $26,000 from last year to $273,214.50 in the first half of 2014. The Liberals continue to be stuck in fourth place in the fundraising department, only raising $181,385.56 in the first half of 2014.

The opinions expressed on this blog represent my own and not those of my employer or any organization I may be affiliated with.

In addition, my thoughts and opinions change from time to time. I consider this a necessary consequence of having an open mind. This blog is intended to provide a semi-permanent point in time snapshot and manifestation of the various ideas running around my brain, and as such any thoughts and opinions expressed within out-of-date posts may not the same, nor even similar, to those I may hold today.